Kotak Mahindra Bank (KOTAKBANK) Q1 26/27 earnings summary

Executive summary

• Consolidated profit after tax for the quarter reached ₹5,480.46 crore, up 23% year-on-year, with standalone bank PAT at ₹4,123 crore, up 26% year-on-year.

• Customer assets under management rose to ₹805,531 crore, up 8% year-on-year, and customer assets (advances plus credit substitutes) grew 16% to ₹645,812 crore.

• Book value per share increased 14% year-on-year to ₹189.

• Strategic acquisition of Deutsche Bank's India retail, private, and wealth businesses for ₹281 crore, expected to close in September 2027.

• Subsidiaries contributed 33% of consolidated PAT, with strong performances from Kotak AMC, Kotak Prime, Kotak Securities, and alternative assets.

Financial highlights

• Total income for the quarter was ₹30,068.60 crore, up from ₹26,703.92 crore year-over-year; standalone total income was ₹17,815.69 crore.

• Net Interest Income for Q1FY27 was ₹7,928 crore, up 9% year-over-year; other income grew 8% to ₹3,338 crore.

• Operating profit increased 10% year-over-year to ₹8,273.69 crore; PAT for the banking entity rose 26% to ₹4,123 crore.

• Gross NPA reduced to 1.18%; net NPA at 0.27%; provision coverage ratio above 78%.

• Book value per share increased to ₹189; earnings per share (consolidated, basic and diluted) for the quarter were ₹5.51, up from ₹4.50 year-over-year.

Outlook and guidance

• Continued focus on stable margins, operating efficiency, and normalization of credit cost.

• No specific NIM guidance; management expects to maintain margins through nimble asset and deposit management.

• Asset growth to be driven by both organic and inorganic opportunities, aiming for above-system growth rates.

• ECL transition expected to have less than 2% one-time net worth impact; ongoing credit cost to rise by 12-15 bps.

• Acquisition of Deutsche Bank’s India retail, private, and wealth management business announced, pending regulatory approvals; no impact yet on current results.